Calender Technologies Ltd, producers of household consumer products are considering international expansion into the Gambia. A local Gambian firm has expressed the desire to buy the licensing rights from Calender Technologies Ltd. However, the C.E.O of Calender Technologies Ltd prefers to do a foreign direct investment in the Gambia instead of licensing. Explain four reasons why the C.E.O. desires foreign direct investment rather than licensing its brand to the Gambian firm. . Explain the exporting mode of international expansion and give three reasons why a company might opt for foreign direct investment rather than exports.
Calender Technologies Ltd, producers of household consumer products are considering international expansion into the Gambia. A local Gambian firm has expressed the desire to buy the licensing rights from Calender Technologies Ltd. However, the C.E.O of Calender Technologies Ltd prefers to do a foreign direct investment in the Gambia instead of licensing. Explain four reasons why the C.E.O. desires foreign direct investment rather than licensing its brand to the Gambian firm. . Explain the exporting mode of international expansion and give three reasons why a company might opt for foreign direct investment rather than exports.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
![2. Calender Technologies Ltd, producers of household consumer products
are considering international expansion into the Gambia. A local
Gambian firm has expressed the desire to buy the licensing rights from
Calender Technologies Ltd. However, the C.E.O of Calender Technologies
Ltd prefers to do a foreign direct investment in the Gambia instead of
licensing. Explain four reasons why the C.E.O. desires foreign direct
investment rather than licensing its brand to the Gambian firm.
3. Explain the exporting mode of international expansion and give three
reasons why a company might opt for foreign direct investment rather
than exports.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff7f1382d-9dbc-4a79-b97d-338d5d60a284%2F9c94ce36-1350-49e2-9c05-f6bf5f6944a8%2Fh609peb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. Calender Technologies Ltd, producers of household consumer products
are considering international expansion into the Gambia. A local
Gambian firm has expressed the desire to buy the licensing rights from
Calender Technologies Ltd. However, the C.E.O of Calender Technologies
Ltd prefers to do a foreign direct investment in the Gambia instead of
licensing. Explain four reasons why the C.E.O. desires foreign direct
investment rather than licensing its brand to the Gambian firm.
3. Explain the exporting mode of international expansion and give three
reasons why a company might opt for foreign direct investment rather
than exports.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Understanding Business](https://www.bartleby.com/isbn_cover_images/9781259929434/9781259929434_smallCoverImage.gif)
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
![Management (14th Edition)](https://www.bartleby.com/isbn_cover_images/9780134527604/9780134527604_smallCoverImage.gif)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
![Spreadsheet Modeling & Decision Analysis: A Pract…](https://www.bartleby.com/isbn_cover_images/9781305947412/9781305947412_smallCoverImage.gif)
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
![Understanding Business](https://www.bartleby.com/isbn_cover_images/9781259929434/9781259929434_smallCoverImage.gif)
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
![Management (14th Edition)](https://www.bartleby.com/isbn_cover_images/9780134527604/9780134527604_smallCoverImage.gif)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
![Spreadsheet Modeling & Decision Analysis: A Pract…](https://www.bartleby.com/isbn_cover_images/9781305947412/9781305947412_smallCoverImage.gif)
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
![Management Information Systems: Managing The Digi…](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780135191798/9780135191798_smallCoverImage.jpg)
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
![Business Essentials (12th Edition) (What's New in…](https://www.bartleby.com/isbn_cover_images/9780134728391/9780134728391_smallCoverImage.gif)
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
![Fundamentals of Management (10th Edition)](https://www.bartleby.com/isbn_cover_images/9780134237473/9780134237473_smallCoverImage.gif)
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON